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Solana (SOL) is currently under selling pressure as Long-Term Holders shift to net sellers, raising concerns about its near-term price stability.
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Technical indicators such as the 50-day and 200-day EMAs reveal bearish momentum, with the persistent Death Cross pattern threatening further declines.
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According to COINOTAG sources, SOL’s ability to break resistance at $154 is critical; failure to do so may lead to a drop to $144, while a successful breakout could push the price to $161.
Solana faces selling pressure from Long-Term Holders amid bearish EMA signals; resistance at $154 is key for recovery or further decline to $144.
Long-Term Holder Selling Signals Potential Weakness in Solana Price Stability
Solana’s recent price decline from $176 to $141 in eight days has been accompanied by a notable shift in investor behavior. Long-Term Holders (LTHs), traditionally viewed as stabilizing forces in the market, have turned net sellers, with outflows reaching a two-month high. This trend is significant because LTHs typically demonstrate patience and confidence in the asset’s long-term prospects.
The increased selling activity from these holders suggests a waning confidence that could undermine Solana’s price resilience. Market participants often interpret LTH selling as a bearish signal, as it may indicate expectations of further downside or a reassessment of the asset’s fundamentals.
Solana HODLer Position Change. Source: Glassnode
Bearish Technical Indicators Reinforce Downward Pressure
From a technical perspective, Solana’s momentum remains weak. The 50-day and 200-day Exponential Moving Averages (EMAs) continue to reflect bearish conditions, with the Death Cross pattern—where the 50-day EMA crosses below the 200-day EMA—still intact since March. This pattern is widely regarded as a signal of sustained downward momentum.
Although there was a brief attempt by the 50-day EMA to cross above the 200-day EMA in late May, it ultimately failed, reinforcing the bearish outlook. The divergence between these EMAs suggests that any recovery attempts may be short-lived unless significant buying pressure emerges.
Solana EMAs. Source: TradingView
Critical Resistance at $154 Determines Solana’s Short-Term Trajectory
After an 18% drop over eight days, Solana has shown a modest rebound, gaining approximately 5% in the last 24 hours and currently trading near $152. However, the $154 resistance level remains a formidable barrier. This price point is pivotal for any bullish momentum to gain traction.
Failure to surpass this resistance could result in a retracement to the $144 support level. Should this support fail, the next downside target is $136, indicating a potential continuation of the bearish trend.
Solana Price Analysis. Source: TradingView
Conversely, a successful breakout above $154 could catalyze a rally toward $161. Achieving this level would not only break the Death Cross pattern but also restore some investor confidence, potentially reversing the current bearish sentiment.
Market Sentiment and Broader Conditions Impact SOL’s Outlook
Solana’s near-term price action is heavily influenced by broader market dynamics and investor sentiment. The selling pressure from Long-Term Holders combined with bearish technical signals suggests caution for traders and investors. However, improvements in overall crypto market conditions or positive developments related to Solana’s ecosystem could provide the necessary impetus for a breakout.
Traders should closely monitor the $154 resistance and $144 support levels as key indicators of SOL’s next directional move. Strategic entry and exit points aligned with these technical markers can help manage risk amid the current volatility.
Conclusion
Solana’s recent price decline is compounded by Long-Term Holder selling and persistent bearish technical signals, notably the Death Cross pattern. The $154 resistance level emerges as a critical juncture for the altcoin’s recovery prospects. While a failure to break this barrier may lead to further declines toward $144 or lower, a decisive breakout could signal renewed bullish momentum. Investors should remain vigilant and consider these technical and market factors when evaluating Solana’s short-term outlook.
